No Recovery Sign For DFC Global Corp (NASDAQ:DLLR)
The stock prices of DFC Global Corp (NASDAQ:DLLR), continued to be slaughtered on Friday as they lost as much as 29% during the trading session. The immense pressure on the stocks came on back of its below par performance during the second quarter earnings of the fiscal year 2014.
A Look At The Quarterly Results
The company’s net revenue slide to $262.3 million in the second quarter, as it fall by 10.4% or 30 million for the period. The total profit of the company also came down to $0.06 per share, a fall of more than 90% from the previous year’s second quarter profit of $0.56 per share. The results were certainly incomparable to what the analysts had predicted, that is, earnings per share of 19 cents a share, which has further put down the morale of the analysts and investors alike. The company mentioned during the earnings session that the weaker gold prices and Canadian dollar as well as the current transition of regulatory framework in United Kingdom impacted the DFC’s business to a major extent.
In view of the disappointing reports, the company has projected a gloomy outlook as well for the fiscal year. The profits as anticipated by the company for the year in the range of $0.35-$0.80, as against the earlier reference of $0.65-$1.27.
Recovery Not Visible
Experts too do not believe that DFC would soon recover from the clutched of the financial instability that has gripped U.K. Recently, Normura Securities too has revised the rating and price target for DFC downward. They have placed a ‘Neutral’ rating on it and has slashed the price target to half at $8 now. The Analyst pointed that signs of U.K. emerging out of the crisis is not near and moreover, DFC’s competitive in capacities will continue to hinder its growth in the coming period.